With five fewer shopping days between Thanksgiving and Christmas, many small business owners say they’ll be pulling out all of the stops to get customers into stores during the critical holiday shopping season. According to the second annual Small Business Saturday Insights Survey, released today by the National Federation of Independent Businesses (NFIB) and American Express, more independent merchants will feel the Christmas creep as they start their promotional activity earlier than last year.

“Small Business Saturday is a reminder of how important the small-business sector is to our economy and why it’s so important to Shop Small all year around.”

For many of the small business owners who are aware of Small Business Saturday, the day will be a part of their promotional calendar. Of those small business owners incorporating Small Business Saturday into their holiday plans, 70% say Small Business Saturday will be helpful in attracting new customers.

Small Business Saturday has become an important fixture on the business calendar for merchants and an increasing number are investing more money and providing additional incentives to reach customers. Even as social media and word-of-mouth remain the top methods for business owners to reach customers with their Small Business Saturday offerings, the number of business owners who say they’ll rely primarily on paid advertising (TV, radio and newspaper) to promote Small Business Saturday has doubled (18% vs. 9% in 2012). Discounts continue to be the top incentive used to encourage consumers to Shop Small, but more business owners are planning to reward customers by offering them a free gift with purchase (33%, up from 20% in 2012).

The busy holiday season often demands a more robust workforce; a large number of business owners are looking to their local communities to hire the help they need to meet consumer demand this holiday season. Nearly three-quarters (73%) of local small business owners aware of Small Business Saturday said they make it a point to hire employees from their neighborhood.

Small Business Saturday, now in its fourth year, falls between Black Friday and Cyber Monday and serves as the traditional kick off to the holiday season for independent retailers and restaurateurs. The day was created in response to small business owners’ most pressing need, more customers, and has since grown into an annual celebration of the independent businesses that help boost our local economies.

“Small-business owners are always looking for new ways to creatively promote their products and services—especially in a tough economy,” said NFIB president and CEO Dan Danner. “Small Business Saturday is a reminder of how important the small-business sector is to our economy and why it’s so important to Shop Small all year around.”

Findings from the survey also uncover the lengths to which small businesses are ready to go to promote their activities on Small Business Saturday. Among those that plan to incorporate Small Business Saturday into their holiday promotions:

75% say the day would be more effective if communities participated together by hosting events;

39% are planning to collaborate with other small businesses in a community event to promote Small Business Saturday; and

33% rely on social media most to promote Small Business Saturday to their customers.

The Small Business Saturday Insights Survey was created to provide a window into holiday planning for small business owners. Other key survey findings relating to Small Business Saturday activities include:

67% will offer discounts on specific items or general discounts on the day;

36% will offer coupons for future offers or discounts; 32% are starting their holiday promotions earlier than last year; and

21% are planning to increase the number of employees working on Small Business Saturday.

Communities come together to take small business saturday to the next level

“In 2012, small businesses took ownership of the day by offering great deals and amazing experiences for their customers,” said Susan Sobbott, president, American Express OPEN. “This year, with more than 1,000 ‘Neighborhood Champions’ rallying communities, the country will be blanketed with Small Business Saturday events that can undoubtedly help keep the registers ringing.”

Tools for making the day their own

For the past three years, small business owners have embraced the day and developed creative and effective ways to promote their businesses. American Express is again helping to amplify those efforts with free digital and in-store marketing tools to help small business owners expand their local footprint on Small Business Saturday and throughout the holiday season.

The Small Business Saturday Marketing Toolkit provides businesses with turnkey, personalized assets and materials to better promote their efforts. These tools are available at ShopSmall.com and include:

Printable signage and decals to print and display in a business;

Logos and imagery for business websites, custom materials, and social media pages; and

Suggested social media and email templates to get the word out to customers on the Web.

American Express has also rallied organizations from across the country to lend a hand in providing resources to mobilize businesses and consumers for the day. Premier partners include:

FedEx Office

A longstanding supporter of Small Business Saturday, this year, FedEx Office is offering two copies of the free 11” x 17” printed poster that small business owners can create as part of their customized marketing campaign on ShopSmall.com. In addition, FedEx Office will offer a special discount to small businesses that take advantage of the free printing offer. FedEx will also promote Small Business Saturday to small businesses and consumers through their marketing channels. Offer terms apply and are available local.fedex.com/?promo=sbs2013.

Foursquare

New this year, Foursquare and American Express are offering small businesses $250,000 in free credits to use on the recently launched Foursquare Ads for Small Business platform. The credits will enable businesses to create local campaigns that can help drive new customers into their stores based on where they are, or what they are searching for. Additionally, Foursquare will highlight millions of small businesses in their app to help drive foot traffic to local merchants on Small Business Saturday. Offer terms apply and are available at business.foursquare.com/shopsmall.

Twitter

Twitter is offering one million dollars in free advertising to small business owners who have not advertised with Twitter previously, to help drive customer engagement and increase sales on Small Business Saturday and throughout the holiday season. Business owners can also get ready for the big day with an educational toolkit containing helpful tips on gaining more followers and launching exclusive promotions. Offer terms apply and are available at business.twitter.com/shop-small.

United States Postal Service (USPS)

As a Premier Partner of Small Business Saturday, USPS is providing shipping of Shop Small branded merchandise orders placed on ShopSmall.com as well as Neighborhood Champion Activation Kits. In a move to help drum up support and activity on Small Business Saturday, USPS will also distribute a consumer mailer and place signage at approximately 1,500 Post Offices to emphasize the importance of supporting their neighborhood business and to help motivate consumers to go out and Shop Small on the day.

Consumer Incentives to Shop Small

Again this year, American Express will give Card Members a special offer for shopping on Small Business Saturday. Card Members who register an eligible American Express® Card will get a one-time $10 statement credit when they use their registered Card to spend $10 or more on November 30, 2013, in a single, in-store transaction at a qualifying small business location that appears on the Small Business Saturday Map. Enrollment is limited and opens on November 24 at ShopSmall.com. Offer terms apply and are available at ShopSmall.com/offerterms.

About the Survey

The Small Business Saturday Insights survey was conducted among a nationally representative sample of 500 owners/managers of retail establishments with physical storefronts, kiosks, and restaurants/bars/pubs that are not part of a franchise. In order to qualify, all establishments had to have fewer than 100 employees. No quotas were established for this criterion, in order to allow for a natural representation of retailers. The average number of employees of all establishments in the survey was 6 (with the vast majority falling in the 0-5 range). The study was conducted anonymously via telephone by Redshift Research from October 4 to October 16, 2013.

About Small Business Saturday

November 30 marks the fourth annual Small Business Saturday, a day to support the local businesses that create jobs, boost the economy and preserve neighborhoods around the country. Small Business Saturday was created in 2010 in response to small business owners’ most pressing need: more customers.

About NFIB

NFIB is the nation’s leading small business association, with offices in Washington, D.C., and all 50 states. Founded in 1943 as a nonprofit, nonpartisan organization, NFIB gives small and independent business owners a voice in shaping the public policy issues that affect their business. NFIB’s powerful network of grassroots activists sends their views directly to state and federal lawmakers through our unique member-only ballot, thus playing a critical role in supporting America’s free enterprise system. NFIB’s mission is to promote and protect the right of our members to own, operate and grow their businesses. More information about NFIB is available online at www.NFIB.com/newsroom.

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